Unionist parties pledge to give Scotland right to set tax rate within Britain

Simon Johnson

Edinburgh: Scotland will be allowed to set its own levels of income tax and benefits if the country rejects independence, the leader's of Britain's Conservative, Labour and Liberal Democrat parties have pledged in an unprecedented joint declaration.

In what will be seen as an attempt to undermine Scottish National Party leader and First Minister Alex Salmond ahead of the first televised debate on independence, the three party leaders have made a joint announcement promising more powers for Scotland if it votes "No".

The Prime Minister David Cameron, his deputy Nick Clegg and the Labour leader Ed Miliband joined their Scottish party leaders by adding their names to a document pledging further devolution if separation is rejected on September 18.

All three pro-Union parties have produced individual proposals for extending devolution after a "No" vote and promised to include them in their manifestos for next year's general election.

However, this is the first time the three leaders have formally united to pledge the devolution of powers over income tax and housing benefit.

The announcement was timed to be made before a television debate between Mr Salmond and Alistair Darling, the leader of the pro-UK Better Together campaign, being broadcast live in Scotland on Tuesday night.

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In a further attempt to destabilise Mr Salmond, Mr Cameron and Mr Clegg will make statements voicing their opposition to independence just hours before the debate.

Scottish First Minister Alex Salmond at the Commonwealth Games in Glasgow. Photo: AFP

But the joint declaration states: "We now pledge to strengthen further the powers of the Scottish Parliament, in particular in the areas of fiscal responsibility and social security."

Mr Salmond has claimed the Unionist parties are bluffing, but the agreement of Mr Cameron, Mr Miliband and Mr Clegg to sign a public written declaration indicates they are prepared to begin devolving further power to Scotland in the immediate aftermath of a "No" vote.